Philippine peso-denominated government bonds are set to be included in a major global benchmark starting 2027, as economic managers hailed the move as a vote of confidence in the country’s financial stability and ongoing market reforms.
In a joint statement, the Department of Finance (DOF), Bureau of the Treasury (BTr), and Bangko Sentral ng Pilipinas (BSP) welcomed J.P. Morgan’s decision to include Philippine government peso bonds in its Government Bond Index–Emerging Markets (GBI-EM) series beginning January 29, 2027.
Officials said the inclusion reflects growing recognition from international investors of improvements in the country’s capital markets, driven by reforms to enhance liquidity, strengthen the repo market, develop the interest rate swap market, and streamline tax treaty processes.
The government said these measures have helped attract greater foreign participation in the local bond market, with the index inclusion expected to further expand the investor base and boost trading activity.
Finance Secretary Frederick Go described the development as a significant milestone, underscoring confidence in the Philippines’ economic fundamentals and fiscal management.
“This milestone will broaden our investor base, improve market liquidity, and help lower borrowing costs,” Go said.
BSP Governor Eli Remolona Jr. highlighted the broader impact on the financial system, noting that increased bond market liquidity could enhance the central bank’s ability to transmit monetary policy more effectively.
“This is a major step in deepening the Philippine capital markets, with significant benefits to the government, investors, and businesses,” he said.
The BTr and BSP said they will continue working with regulators and market participants to align local trading practices with global standards, as part of efforts to sustain investor confidence and further develop the domestic bond market.